In our latest episode of Hustle and Humor, I discussed the importance of OKRs and KPIs.
If you're a founder looking to scale your professional services firm or tech company, understanding when and how to use these metrics will make a significant difference in your growth strategy.
What Are OKRs and KPIs?
OKRs (Objectives and Key Results) are a strategic framework used to set and achieve significant goals. They help in aligning the team’s efforts towards measurable outcomes.
However, unless your company has a solid product-market fit, diving into OKRs might be a bit premature. Instead, focus on KPIs (Key Performance Indicators), which are specific metrics to gauge your progress and performance.
When to Use OKRs vs. KPIs
Early Stages: Concentrate on KPIs. They help you understand if you’re heading in the right direction without overwhelming your team with grand objectives.
Scaling Up: Once you have product-market fit and are ready to scale, OKRs become invaluable. They provide a clear roadmap and measurable targets to achieve your strategic goals.
Example: You're running a new SaaS company.
KPI - A KPI might be tracking user sign-ups. When sign-ups plateau, you streamline the sign-up process based on feedback and see a 30% increase the next month.
OKR - With market fit established, your Objective might be "Become the leading project management tool for remote teams." Key Results: "Increase market share by 15%," "Launch two major updates," "Achieve a 90% customer satisfaction score."
My Spicy Take
Setting OKRs too early can lead to spinning your wheels without meaningful progress. Early-stage companies should prioritize learning, testing, and pivoting based on KPIs.
Pro Tip: Use KPIs to navigate the early stages of your business. Save the OKRs for when you’re ready to scale.
Implement these strategies, and watch your business thrive. For more insights, listen to the full episode of Hustle and Humor available on all podcast platforms and YouTube.
For Fractional COO support, or for assistance identifying the right KPIs or OKRs for your business, contact us at caitlin@ceofconsulting.com
Keywords: operations, founder, professional services, OKRs, KPIs, scaling business, SaaS
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